Even as the Uttar Pradesh government targets agricultural growth rate of five per cent, the state ground level credit potential has been pegged at Rs 1,01,315 crore for 2013-14.
This is 21 per cent more than the aggregate credit estimate for the current financial year at Rs 79,988 crore.
The potential credit estimates by National Bank for Agriculture and Rural Development (Nabard) comprises Rs 73,490 crore for agriculture, which includes Rs 58,928 crore for crop loan.
Besides, the state credit plan envisages potential of Rs 12,894 crore under non farm sector, including Rs 886 crore under food & agro processing, and additionally Rs 14,931 crore for other priority sector. This aggregates Rs 1,01,315 crore for 2013-14.
Last year, Potential Linked Credit Plan (PLP) had increased by 25 per cent from Rs 64,531 crore in 2011-12 to Rs 79,988 crore for the current fiscal.
These estimates are incorporated in the State Focus Paper, which aims at increasing productivity, private capital formation in agriculture, removal of gaps in infrastructure, inclusive growth and financial inclusion.
The Paper was released by UP Agricultural Production Commissioner Alok Ranjan, who suggested the banks to cover small and marginal farmers through Joint Liability Groups.
The Paper deals with the aggregate of credit potentials estimated under various sectors of economy - both Farm and Non-Farm Sectors, the status of infrastructure under each sector/sub sector and its critical gaps in respect of all the districts of UP as documented in the PLPs.
As per Reserve Bank of India (RBI) guidelines, annual PLP is part of decentralised credit planning undertaken by NABARD through consultative process to estimate credit potential in various sectors of economy, both farm and non-farm.
On the basis of PLP, the commercial banks prepare Annual Credit Plan (ACP) for UP, which fixes individual bank targets under Lead Bank Scheme.
